Corporate strategy

As part of the regular strategy review in 2016, the Wilo Group reviewed, honed and adjusted the corporate strategy to new challenges. The successful corporate strategy Ambition 2020 was revised, augmented and enhanced into Ambition 2020+. However, the altered economic conditions and new technological developments do not necessitate any radical change of the Wilo Group’s long-term targets or its corporate strategy. The core targets remain unchanged. 

Wilo intends to remain independent and generate profitable growth. Ambition 2020+ still specifies that net sales shall be increased to more than EUR 2 billion and an EBIT margin in excess of 10 percent shall be achieved by 2020. The fundamental strategic directions for each of the three market segments (Building Services, Water Management and Industry) were affirmed. One of the main goals in Building Services remains to extend the Group’s market, technology and innovation leadership. The Group’s global market presence will be increased further in the Water Management market segment, while the Industry market segment will see a focus on selected industries and applications.

Major changes in connection with Ambition 2020+ relate to the issues of growth and digitalisation, which are now more specifically incorporated into the corporate strategy. Eight specific growth initiatives for regions, market segments and divisions were defined in order to implement the strategy. They focus on covering every area of application across all market segments, strengthening the position as a provider of solutions, expanding regionally and developing new business models and markets. The growth initiatives also explicitly address external growth through targeted corporate acquisitions.

Digitalisation as a global megatrend will also be supremely important for Wilo in the years to come. Therefore, digitalisation and technological progress were included in the Wilo trends covered by the ‘trend radar’. The latest developments in the field of digitalisation will thus be closely and continuously monitored. On this basis, scenarios will be developed with regard to how future markets in the global pump industry will change. The aim to be a digital pioneer in the pump industry has thus been explicitly enshrined in the corporate strategy as part of its revision and enhancement into Ambition 2020+.

Ambition 2020+ will be implemented from 2017 within the framework of the eight major growth initiatives. These will be led by experienced managers from the second tier of management of the Wilo Group. At the same time, the activities of the previous strategy implementation programme, A2P, will be transferred and systematically integrated into the new initiatives. In addition, the WIN cost initiative has been launched to permanently secure and accelerate profitable growth. As part of this extensive project, significant cost structures and drivers throughout the Group are being analysed and optimised. Digitalisation is being promoted consistently in all processes within the Group as well as for customers via innovative products and services. 

In 2016, the Wilo Group formulated an overarching vision and mission, enhanced the existing corporate values and harmonised them with Ambition 2020+. The vision is the guiding objective that the Wilo Group wants to achieve and a confident, clear statement of Wilo’s standpoint in a constantly changing world. Wilo is gradually evolving into the leading system provider with tailored, intelligent, and resource-efficient solutions.

On the basis of this vision, the mission describes the main purpose or undertaking that Wilo is pursuing and serves as a set of instructions for meeting the current and future challenges of the market. The Wilo Group wants to use its products and the pertinent solutions and services to make people’s lives easier around the world.

On the basis of this vision, the mission describes the main purpose or undertaking that Wilo is pursuing and serves as a set of instructions for meeting the current and future challenges of the market. The Wilo Group wants to use its products and the pertinent solutions and services to make people’s lives easier around the world.

Integrity, fairness, respect – in 2016 enhanced by passion and responsibility – are the inviolable values by and with which Wilo works and lives. They form a shared foundation to which each individual commits regardless of their position, duties and responsibilities in the company. In the future just as in the past, the sustainable success of the Wilo Group will largely be based on these shared values.

In the year under review, the Wilo Group developed in line with its strategy and further reinforced its position as an innovative, independent manufacturer of pumps and pump systems internationally. The Group remains on a profitable growth path. Net sales were increased by 0.8 percent in 2016, or 3.9 percent after adjustment for exchange rate effects. With an EBIT margin of 8.1 percent, the Wilo Group fell short of the strategic target corridor of between 9 and 11 percent. Digitalisation projects to promote growth and safeguard the company’s future, the strategic location development project in Dortmund and important research and development projects were systematically advanced and reduced profitability accordingly.

Order report

WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363

Contact

WILO SE
Corporate Communications
Nortkirchenstraße 100
44263 Dortmund
T +49 231 4102-0
F +49 231 4102-7363